Skip O'Neill – Liberty for All

Ron Paul for A New Direction

China’s Economic bubble begins to deflate in 2013

with 2 comments

China Bubble begins to deflate, China currently has 65 million vacant units of real estate, these cities have been rightly dubbed, ghost cities. China has also been stockpiling commodities, this growth is now on edge due to China’s wage dilemma. If China allows wages to rise so that their citizens can begin to purchase a lifestyle of a middle class family, China may as a result lose jobs to lower wage countries like India and other parts of Asia. However, if China continues to keep wages low, they will basically be stuck building an empire that no one can afford to live in. To top it off, China has a long term demographics problem, probably the worst the world has ever seen due to China’s 1 child policy. China over the last generation has created a population of 4 grandparents, 2 parents, and 1 child. China in the next 20 years will have more old people than the entire U.S. population. As the world slows down, China will potentially see the worst of the downturn as jobs move out of China and demand for Chinese goods collapse in the West as those nations experience depressions and dramatically lower incomes from austerity.

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Written by opinionoregon

January 6, 2013 at 8:21 pm

2 Responses

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  1. Do you think that there is any possibility that the Chinese government will react to these issues by backing off from central planning? Or is it more likely that they will clamp down harder as most governments do in downturns like this? As much as I hate to see any nation’s wealth deteriorate, this will make a great “teachable moment” for all those proponents of the command economy.

    Daniel

    January 13, 2013 at 3:47 pm

  2. I hate to say it, but I think the U.S. is moving toward a Chinese gov’t central planning platform. Our liberties are being erroded and there doesn’t seem to be any slowing that errosion down

    skiponeill

    January 15, 2013 at 4:32 pm


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